Southern vs NorthWestern Which Is More Attractive?

Southern and Northwestern stocks represent two distinct regions in the United States with unique economic characteristics. Southern stocks are often associated with industries such as agriculture, energy, and manufacturing, while Northwestern stocks are more closely tied to technology, healthcare, and consumer goods. The Southern region is known for its lower cost of living and abundance of natural resources, while the Northwestern region is known for its innovation and highly educated workforce. Understanding the differences between these two regions can help investors make informed decisions about their stock portfolio.

Southern or NorthWestern?

When comparing Southern and NorthWestern, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Southern and NorthWestern.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Southern has a dividend yield of 3.22%, while NorthWestern has a dividend yield of 5.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Southern reports a 5-year dividend growth of 3.16% year and a payout ratio of 63.19%. On the other hand, NorthWestern reports a 5-year dividend growth of 3.08% year and a payout ratio of 69.66%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Southern P/E ratio at 20.52 and NorthWestern's P/E ratio at 14.87. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Southern P/B ratio is 2.63 while NorthWestern's P/B ratio is 1.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Southern has seen a 5-year revenue growth of 0.00%, while NorthWestern's is -0.01%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Southern's ROE at 14.23% and NorthWestern's ROE at 8.08%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $88.14 for Southern and $54.32 for NorthWestern. Over the past year, Southern's prices ranged from $65.80 to $94.45, with a yearly change of 43.54%. NorthWestern's prices fluctuated between $46.15 and $57.48, with a yearly change of 24.55%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.